Posts Tagged Ally Financial

Utah joins other states in foreclosure probe

Utah has joined other states in the foreclosure probe against JP Morgan Chase and GMAC as they look into fraud that may have been committed at the banking level in an effort to foreclose on homes where borrowers were delinquent in their payments. Because loan servicing rights are bought and sold all the time, the question of who really has the right to foreclose has been brought-up as well as needed documentation has been lost and then recreated by the foreclosing servicer.

How many, if any homes will this save? It’s hard to tell. In the end, if a borrower is behind more than three payments (regardless of why and any follower of this blog knows my feelings on that) they are still in violation of their loan terms.

After several court decisions throughout the nation against JP Morgan Chase and GMAC Mortgage, the lenders have decided to halt foreclosure proceedings in 23 states including Utah. At question is their foreclosure process including accusations that they fabricated documents they couldn’t find to complete foreclosures on homeowners. Read more about it here:

An article in the Salt Lake Tribune gives (I think) some good advice for the new reality of the economy, including buying a house you can easily afford (which regardless of what FHA, Fannie Mae or Freddie Mac approve you for I always recommend doing), paying down credit card debt and saving for emergencies rather than relying on credit cards or lines of credit to take care of them. It really is going back to the old idea of savings, which until the past year Americans have had a negative saving rate. Read the whole article here: